Well, I am not old enough to do a reverse mortgage.
I have feelers out with local attorneys (Titusville, FL area) as well as various local investment groups here on the Space Coast.
Secondly, maybe I have used or selected the wrong vehicle for describing my intentions. The proper vehicle may well not be a Lady Bird deed.
I have thought about the downsides for the investor. Yes, the date of my passing is unknown, so the investor would have to consider it a long term deal. As for the upkeep, selling, etc. issues, those would be all addressed in the final detail of the plan. It is not my intention to allow the property to fall into any sort of disrepair, but it is my intention to offer a fair honest investment in real estate to the proper investor. Risk? Very low. All investments have risk, but there is much greater risk in stocks today than the idea that I present, and ppl are climbing all over each other to buy stocks…unknown growth rate stocks. I feel that if you hold the right real estate long enough, you will realize a gain. You don’t want a slum property, and this is a very fine, upscale home in a very nice rural setting. Executive, MD, NASA engineer type home…pool, orange trees all around…very nice. Easily marketable when the time comes.
As I said, call dates could be established for both parties to back out, protections would be built in to protect the investor from the downsides. The worst downside I can see is the non liquid nature of the investment, and the unknown “inheritance date”. The liquidity issue could be handled with an established “call date” for getting out. The discount of 100k I think is quite reasonable, considering the appreciation potential of this property. And, consider that the tax hit has got to be favorable…more favorable than paying capital gains taxes on short term cap gains…such as those incurred when flipping real estate.
Look at it like this, consider a 35 yo investor that has recently aquired money that needs investing. The investor is completely disillusioned with stocks, money market, etc. and wants a long term place to invest for say his kid’s college…He wants to invest in real estate, but he doesn’t want the hassle of upkeep, and property taxes…The market is at it’s bottom trough here…so the real estate is poised to go up…this would be the kind of investor that could benefit.
Or the 70 yo who wants to leave IN HIS ESTATE an investment for his grandkids…
My postings here are to find the proper investor pool…anyone know of such a group or an individual who may be interested? Please post if you do.